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The debit total of a Revaluation Account is ₹2,94,000 and its credit total is ₹3,08,500. What is the result?

Answer and explanation

Correct answer: Profit of ₹14,500

The credit total exceeds the debit total by ₹3,08,500 − ₹2,94,000 = ₹14,500, so the Revaluation Account shows a profit. It is shared among the old partners in their old profit-sharing ratio.

Related tags

Revaluation AccountProfit CalculationOld PartnersAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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